9 Questions
What is the impact of signing a trade treaty with a Most Favored Nation clause?
Both nations now had to extend their lowest tariff on all goods with their treaty partner.
What was a weak point of the gold standard in the period between the two world wars?
The loss of British leadership at the international level.
What is a likely cause of hyperinflation in places like Germany between the wars?
Reparations payments and government budget deficits.
What happens when nations sign a trade treaty with a Most Favored Nation clause regarding tariffs?
Both nations must extend their lowest tariff on all goods with their treaty partner.
Why was the gold standard in the period between the two world wars considered weaker than before World War I?
Nations could not commit to play by the rules of the game.
What is the effect of signing a trade treaty with a Most Favored Nation clause regarding tariffs?
Both nations extend their lowest tariff on all goods with their treaty partner
What contributes to hyperinflation in places like Germany between the wars?
Reparations payments and government budget deficits
Why was the gold standard in the period between the two world wars considered weaker than before World War I?
Loss of British leadership at the international level
What was a notable characteristic of capital flows after the marginal product of capital diverged?
Capital flows were liberalized
Test your knowledge on economic integration and trade with these multiple-choice questions covering topics like tariffs, interest rates, skilled workers, and shipping times. Explore concepts related to global capital markets and productivity advances according to Adam Smith's views.
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